QP takes steps to sweeten deals

24 February 2006

Qatar Petroleum (QP) announced on 15 February major changes in its contracting strategy, as part of efforts to initiate global bidding procedures and ensure best industry practices. A contract forum - comprising QP and engineering, procurement and construction (EPC) contractors, suppliers and vendors - has been set up. Benchmarking of QP's contracting procedures against global standards has also been introduced. The other changes include:

Waiving of the tender bond for single-sourced tenders;

Waiving of tender fees for single-sourced and classified tenders;

A general decrease in tender fees;

Implementing an early payment discount principle for selected contracts worth more than QR 50 million ($14 million);

Advance payment of 10 per cent on all General Tenders Committee (GTC) contracts on the submission of a bank guarantee of equivalent value;

Multi-currency payments on selected major contracts; andWaiving the retention money requirement for all contracts if a contractor provides a performance bond.

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